While growth is established for NASDAQ:ACLS, the stock's valuation remains reasonable.

Last update: Jan 12, 2024

Consider AXCELIS TECHNOLOGIES INC (NASDAQ:ACLS) as an affordable growth stock, identified by our stock screening tool. NASDAQ:ACLS is showcasing impressive growth figures and is well-positioned in terms of profitability, solvency, and liquidity. Moreover, it seems to be priced reasonably. Let's dive deeper into the analysis.

Growth Examination for NASDAQ:ACLS

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:ACLS has earned a 8 for growth:

ACLS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.63%, which is quite impressive.
Measured over the past years, ACLS shows a very strong growth in Earnings Per Share. The EPS has been growing by 30.01% on average per year.
ACLS shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.37%.
The Revenue has been growing by 17.51% on average over the past years. This is quite good.
The Earnings Per Share is expected to grow by 18.98% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.54% on average over the next years. This is quite good.

Evaluating Valuation: NASDAQ:ACLS

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:ACLS has achieved a 8 out of 10:

Based on the Price/Earnings ratio, ACLS is valued cheaper than 80.95% of the companies in the same industry.
When comparing the Price/Earnings ratio of ACLS to the average of the S&P500 Index (25.87), we can say ACLS is valued slightly cheaper.
Based on the Price/Forward Earnings ratio, ACLS is valued cheaply inside the industry as 90.48% of the companies are valued more expensively.
ACLS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 20.79, which is the current average of the S&P500 Index.
Based on the Enterprise Value to EBITDA ratio, ACLS is valued cheaply inside the industry as 81.90% of the companies are valued more expensively.
84.76% of the companies in the same industry are more expensive than ACLS, based on the Price/Free Cash Flow ratio.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of ACLS may justify a higher PE ratio.
ACLS's earnings are expected to grow with 18.98% in the coming years. This may justify a more expensive valuation.

Evaluating Health: NASDAQ:ACLS

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:ACLS has achieved a 8 out of 10:

An Altman-Z score of 8.26 indicates that ACLS is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 8.26, ACLS is doing good in the industry, outperforming 75.24% of the companies in the same industry.
The Debt to FCF ratio of ACLS is 0.23, which is an excellent value as it means it would take ACLS, only 0.23 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of ACLS (0.23) is better than 82.86% of its industry peers.
A Debt/Equity ratio of 0.06 indicates that ACLS is not too dependend on debt financing.
ACLS has a Current Ratio of 3.89. This indicates that ACLS is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of ACLS (3.89) is better than 62.86% of its industry peers.
A Quick Ratio of 2.69 indicates that ACLS has no problem at all paying its short term obligations.

Exploring NASDAQ:ACLS's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:ACLS has achieved a 8:

ACLS's Return On Assets of 19.32% is amongst the best of the industry. ACLS outperforms 86.67% of its industry peers.
The Return On Equity of ACLS (28.99%) is better than 84.76% of its industry peers.
ACLS has a Return On Invested Capital of 22.11%. This is amongst the best in the industry. ACLS outperforms 91.43% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ACLS is above the industry average of 12.09%.
The last Return On Invested Capital (22.11%) for ACLS is above the 3 year average (17.01%), which is a sign of increasing profitability.
With a decent Profit Margin value of 21.37%, ACLS is doing good in the industry, outperforming 76.19% of the companies in the same industry.
ACLS has a better Operating Margin (22.36%) than 74.29% of its industry peers.
In the last couple of years the Operating Margin of ACLS has grown nicely.
ACLS's Gross Margin has improved in the last couple of years.

Every day, new Affordable Growth stocks can be found on ChartMill in our Affordable Growth screener.

For an up to date full fundamental analysis you can check the fundamental report of ACLS

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.